Billionaire Greg Goodman will put his stamp on Western Sydney’s new airport precinct

Goodman Group chief executive Greg Goodman will become a major player in the new airport precinct. Picture: John Feder

The Goodman Group is poised to unveil the logistics purchase of the year, buying up a massive site next to the under-construction Western Sydney International Airport for about $575m.

The company is buying the land after it was put on the block by CSR earlier this year. That company was privatised last month after shareholders accepted a $4.32bn takeover from French building giant Saint-Gobain. But, the gateway site, which spans 196ha in the Aerotropolis precinct, was seen as surplus to its requirements.

Goodman has been stepping up its purchases of industrial land in hubs around Australia, moving when other players — more reliant on debt — are out of the market, as it has the capacity to fund large-scale developments via its funds model.

The airport play would be one of the largest the country has seen and stamp its authority in the area as it will develop a multibillion-dollar logistics estate in coming years.

Other groups have also flocked to the new airport precinct. They are betting on demand for around-the-clock logistics and links the airport will bring to bustling Asian markets.

Mirvac has lodged plans to develop the Elizabeth Enterprise Precinct which will have seven warehouses supporting freight and logistics.

Charter Hall is working in partnership with the airport on a business precinct which will span industrial, commercial, hotel and retail.

The Western Sydney International Airport completed construction earlier this year. Picture Thomas Lisson

Super fund giants UniSuper and ISPT last year acquired a 280ha greenfield logistics development site known as Burra Park in a joint venture from a China-linked group. It has an end value of more than $3.9bn and could span more than 800,000sq m of space.

The entire precinct is set to be transformed by the opening of the airport in 2026 as it will be both a centre for distribution across Sydney’s western suburbs and an international freight hub.

The land Goodman is buying will be one of the largest single property sales of this cycle. It is being handled by CBRE’s Cameron Grier, Jason Edge and Chris O’Brien but they and the company did not comment.

The precinct comprises 225, 235 and 245 Martin Road, Badgerys Creek. It was billed as a generational opportunity to secure the last gateway site of scale in the Aerotropolis precinct.

There is a net developable area of 112ha on the overall parcel. It is well-connected to roads including Elizabeth Drive, Bringelly Road, Northern Road and the soon to be opened M12 Motorway.

Goodman is likely to roll it out as it secures new tenants, with the Badgerys Creek estate to become one of the largest logistics estates in Australia with about 600,000 sq m of space developed.

The estate is likely to be chased by global occupiers who can integrate it into their supply chains, especially if they have facilities in other Goodman estates around the world.

While the developers hold big ambitions around the airport, which is yet to lock down major airlines, in the short-term they will be looking to capitalise on Sydney’s hot industrial market, still facing a chronic shortage of supply with vacancy rates as low as 2.1 per cent. This is among the lowest globally and, overall, there is limited development activity.

Goodman will also benefit from the $20bn-plus in committed funding for the delivery of the airport and supporting critical infrastructure, including $1.9bn for upgrades to key arterial roads.

The acquisition will also give Goodman continuity in its development pipeline in NSW, in-line with its growth objectives and setting business up for the future.

The industrial giant has struck a run of deals to grow in strategic locations near major infrastructure and has been in talks with authorities about its plans and with potential customers.